Pranab hints at tax proposal review
Terming inflation as the most important issue to be addressed, finance minister Pranab Mukherjee expressed hope that the country’s gross domestic product growth in 2011-12 would touch nine per cent.
Mr Mukherjee, replying to the discussion on the Budget in the Lok Sabha on Friday, also appeared to hint that he might review some of his tax proposals. “Since the presentation of Budget 2011-12, I have received several suggestions and representations, including valuable feedback from members on taxation proposals. These are under examination. I shall respond to these issues in my reply to the discussion on the Finance Bill, 2011, later during this session,” Mr Mukherjee said.
Stating that food inflation at the current 9.5 per cent was “unacceptable”, the FM said the government has taken several steps to bring it down further. He remarked that inflationary pressures had prevailed globally. The FM said he was aware of the high international oil prices and the public protests in north Africa and West Asia but did not know whether crude oil prices would stabilise between $60 and $80 per barrel.
High, broad-based and inclusive economic growth would generate the wealth necessary to fund social welfare schemes, Mr Mukherjee said, adding that capital investment in the health and education sectors would be eligible for the finance ministry’s Viability Gap Funding Scheme.
Besides announcing `500 crore for the Women’s Self-Help Groups Development Fund, he extended the existing interest subvention scheme to around 20 lakh fishermen. Making a pitch for fiscal prudence, the FM said his target of reducing fiscal deficit from 5.6 per cent to 5.1 per cent this year was realistic. “I did not fudge the figures,” Mr Mukherjee said, refuting such allegations.
Renewing his focus on the agriculture sector, he said boosting agricultural production, providing more credit to farmers and improving the minimum support price was a priority for the government. He added that the public distribution system needed a revamp and that the states should improve lifting of subsidised food items to counter inflation.
On recovery of black money stashed abroad, the FM said the legal way has to be pursued. He said the government was revising its double taxation avoidance agreements with several countries and signing tax information exchange agreements with tax havens. He said a task force has been set up to quantify the amount of illegal money being generated.
Responding to the earlier observations of BJP leader M.M. Joshi, the FM said the economic growth of the past years had not been a jobless one.
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